Zoetis Inc (ZTS)
Debt-to-equity ratio
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 5,220,000 | 6,574,000 | 6,563,000 | 6,562,000 | 6,564,000 | 6,552,000 | 6,555,000 | 6,559,000 | 6,552,000 | 5,210,000 | 5,221,000 | 5,228,000 | 6,592,000 | 6,592,000 | 6,592,000 | 6,587,000 | 6,595,000 | 6,595,000 | 7,194,000 | 5,963,000 |
| Total stockholders’ equity | US$ in thousands | 4,770,000 | 5,234,000 | 4,966,000 | 5,058,000 | 4,997,000 | 5,078,000 | 4,625,000 | 4,494,000 | 4,405,000 | 4,663,000 | 4,580,000 | 4,658,000 | 4,543,000 | 4,679,000 | 4,350,000 | 4,089,000 | 3,769,000 | 3,602,000 | 2,982,000 | 2,753,000 |
| Debt-to-equity ratio | 1.09 | 1.26 | 1.32 | 1.30 | 1.31 | 1.29 | 1.42 | 1.46 | 1.49 | 1.12 | 1.14 | 1.12 | 1.45 | 1.41 | 1.52 | 1.61 | 1.75 | 1.83 | 2.41 | 2.17 |
December 31, 2024 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $5,220,000K ÷ $4,770,000K
= 1.09
The debt-to-equity ratio of Zoetis Inc has shown a declining trend over the past five years, indicating a relatively lower reliance on debt financing compared to equity. As of December 31, 2024, the ratio stood at 1.09, signaling that the company's debt level was approximately 1.09 times its equity value. This suggests a conservative capital structure, with a higher proportion of financing coming from equity rather than debt.
The downward trend in the debt-to-equity ratio from 2.17 in March 2020 to 1.09 in December 2024 implies that the company has been progressively reducing its debt burden relative to its equity base. A decreasing ratio generally indicates improved financial stability and lower financial risk for the company.
Overall, Zoetis Inc's decreasing debt-to-equity ratio shows a prudent approach to managing its capital structure by balancing debt and equity financing. This trend may reflect a strategy to maintain financial flexibility, reduce interest expenses, and enhance shareholder value in the long run.
Peer comparison
Dec 31, 2024